Yep, in the original game they went up to level 10.
In the new game they go up to level 15.
The only thing that leveling does is give you more HP.
You have to buy the power-ups (new abilities) with in game $.
Plus to make your Skylander better, you can do Heroic Challenges.
These challenges are pretty tough, but if you complete them it gives one of your stats a boost.
The stats are Speed, Attack, Defense, and Elemental Power.
The one thing about the older characters when transferring over, is that any stat increases will NOT be transferred over.
Yes you can take the figures over to a friends house (they can have the version of the game for ANY system) to battle or team up.
There are battle arenas to fight in, or you can just help beat a level.
Yes if you are not careful, this game series can be extremely expensive.
If you want all the figures, that is. Some of the figures from the last game are still really hard to find, and I am talking about just normal figures, not the stuff like glow-in-the-dark, translucent, or even silver/gold figures.
Of course there were figures from various toy fairs/comic cons as well.
Though this time it looks like Activision might be on their game a bit better.
Cause right when the game came out (on Sunday) there were tons of the new figures to get. Apparently the second wave is already out as well.
Though I bet that after Christmas these are gonna be hard to find again.